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{{ | {{a|cdd|}}[[Narrowly-traded credit event]] or [[NTCE]] refers to a buried whoopsie in the [[2014 ISDA Credit Derivative Definitions]] that reared its little button nose during a refinancing in 2017 by that scion of the New York Stock Exchange, [[Hovnanian Enterprises]]. | ||
Hovnanian intentionally withheld a debt payment to an [[affiliate]] as part of a non-stressy refinancing. Though it was financially sound and ''able'' to make the payment, as a “[[Reference Entity]]” in the argot of the [[2014 ISDA Credit Derivative Definitions| credit derivative definitions]] not doing so would technically constitute a [[failure to pay]] — a [[credit event]], by any lights, although a false flag in the context of [[credit derivatives]], which are meant to track credit deterioration. | Hovnanian intentionally withheld a debt payment to an [[affiliate]] as part of a non-stressy refinancing. Though it was financially sound and ''able'' to make the payment, as a “[[Reference Entity]]” in the argot of the [[2014 ISDA Credit Derivative Definitions| credit derivative definitions]] not doing so would technically constitute a [[failure to pay]] — a [[credit event]], by any lights, although a false flag in the context of [[credit derivatives]], which are meant to track credit deterioration. |